Pressure on profits from soaring raw material prices
First written in FY2018-Q2. 9 of 22 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-11-04.
The whole theme swung hardest in 2022: 126 of 167 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Although manufacturing and sales of the main businesses declined due to deteriorating market conditions in North America and China, the earnings structure improved significantly through greater operating efficiency following a review of unprofitable divisions and the stabilization of raw material prices, securing higher profit.」
The stabilization of raw material prices and the review of unprofitable businesses partially eased the situation in which higher raw material prices had placed significant pressure on profit, with the Chemicals segment posting a 73.7% increase in operating profit despite lower sales. - FY2026-H1MitigatedAnnual report
「Profit increased as manufacturing costs declined following progress in cost reductions driven by stabilizing raw material prices and downsizing unprofitable businesses.」
The stabilization of raw material prices partially eased the impact of rising raw material prices, which had previously pressured profit, during the interim consolidated accounting period under review and contributed to higher profit in the Chemicals segment. - FY2025-H1RestatedAnnual report
「Manufacturing and sales for the automotive industry were affected in Japan by soaring raw material prices, while overseas sales increased because manufacturing and sales by a consolidated company acquired in the previous fiscal year began contributing during the interim consolidated accounting period under review.」
The report stated that soaring raw material prices continued to affect domestic automotive-related manufacturing and sales, while overseas sales increased due to the contribution from the acquired company. - FY2024RestatedAnnual report
「Cost of sales increased by ¥7,999 million from the previous consolidated fiscal year to ¥51,380 million, due to higher sales and raw material prices,」
Higher raw material prices continued to emerge in the results as a factor behind the increase in cost of sales. - FY2024-Q1RestatedAnnual report
「In addition, earnings remained weak due to higher raw material prices and logistics costs, among other factors.」
Margin pressure from higher raw material prices and logistics costs continued in the Chemical Products segment. - FY2023-Q2WorsenedAnnual report
「Manufacturing and sales of general industrial and specialty chemicals for domestic and overseas markets declined due to the impact of automobile manufacturers suspending operations and the absence of the large equipment orders received in the previous year. Earnings also declined due to higher raw material prices and marine transportation costs. Segment sales were ¥3,068 million, down 5.8%, while operating profit was ¥106 million, down 47.9%.」
Higher raw material prices and marine transportation costs put pressure on profit in the Chemical Products segment, with the impact quantified as a 5.8% decline in sales and a 47.9% decline in operating profit. - FY2023-Q1WorsenedAnnual report
「Earnings also declined due to higher raw material prices and marine transportation costs. Manufacturing and sales of fine chemicals in Japan and overseas generated higher sales as demand for semiconductors and electronic components related to communications remained solid, but profit declined due to higher transportation costs resulting from soaring raw material prices and the Shanghai lockdown, among other factors.」
In addition to higher raw material prices, rising marine transportation and other shipping costs put pressure on profit in the Chemicals and Chemical Products segments and became a factor behind lower profit even in segments with higher sales. - FY2022WorsenedAnnual report
「Manufacturing and sales for the automotive industry in Japan and overseas remained weak due to reduced automobile production caused by semiconductor shortages, but sales increased due to the impact of the weaker yen on overseas subsidiaries. However, operating profit declined significantly due to higher raw material prices and transportation costs. Segment sales were ¥17,736 million, up 13.1%, while operating profit was ¥339 million, down 70.6%.」
Higher raw material prices and transportation costs reduced operating profit in the Chemicals segment by 70.6% year on year, further quantifying the impact of margin pressure. - FY2022-Q3WorsenedAnnual report
「Earnings declined substantially due to the significant impact of soaring raw material prices.」
The impact of soaring raw material prices was significant in the Chemicals segment, with operating profit down 62.2% year on year. - FY2022-Q2MaterialisedAnnual report
「Manufacturing and sales for the automotive industry generated higher sales due to the rebound from the impact of COVID-19 in the previous fiscal year, but earnings were only slightly higher because of the significant impact of soaring raw material prices. Segment sales were ¥8,303 million, up 32.5%, while operating profit was ¥183 million, up 4.2%.」
While sales in the Chemicals segment increased 32.5%, the significant impact of soaring raw material prices limited the increase in operating profit to 4.2%. - FY2022-Q1MaterialisedAnnual report
「Manufacturing and sales of automotive soundproofing materials resulted in higher sales and profit due to the rebound from the impact of COVID-19 in the previous fiscal year. In Japan, however, the business remained weak due to reduced automobile production caused by semiconductor shortages and the impact of soaring raw material prices.」
The report stated that soaring raw material prices affected domestic sales of automotive soundproofing materials, showing continued pressure on profit and the business from rising raw material prices. - FY2020-Q2MaterialisedAnnual report
「Sales of general-purpose industrial chemicals and large-scale cleaning equipment for the domestic market remained firm, but earnings declined due to lower sales of high-value-added export-related products and higher raw material costs and expenses. Sales in this segment were ¥3,527 million, up 7.9% year on year, while operating profit was ¥178 million, down 31.7%.」
Higher raw material costs and expenses put pressure on profit in the Chemical Products segment, quantifying the impact at a 7.9% increase in sales against a 31.7% decline in operating profit. - FY2020-Q1MaterialisedAnnual report
「Manufacturing and sales for the automotive industry in Japan and overseas resulted in lower sales and profit due to declining sales to major automakers and higher raw material procurement costs, among other factors. Segment sales were ¥3,963 million, down 4.4%, while operating profit was ¥172 million, down 46.4%.」
Margin pressure from higher raw material procurement costs and other factors continued, with sales in the Chemicals segment down 4.4% and operating profit down 46.4%. - FY2019MaterialisedAnnual report
「Manufacturing and sales for the automotive industry fell below the previous year due to production cuts by major automakers in Japan and the slowdown in the Chinese economy, among other factors, while higher raw material procurement costs and other factors led to lower profit. Segment sales were ¥17,168 million, down 1.0% year on year, while operating profit was ¥1,372 million, down 16.8%.」
Margin pressure from higher raw material prices materialized in the Chemicals segment, with sales down 1.0% and operating profit down 16.8%. In the Chemical Products segment, operating profit also declined 10.1% due to higher raw material prices. - FY2019-Q3RestatedAnnual report
「Manufacturing and sales for the automotive industry in Japan and overseas remained solid for sales to major automakers, but higher raw material procurement costs and other factors resulted in higher sales and lower profit. Manufacturing and sales of general industrial and specialty chemicals for the domestic market, as well as export-related sales, also remained strong, and improvements were made in raw material costs and production efficiency, among other areas, but sales increased while profit declined.」
The report stated that higher raw material prices continued to put pressure on profit in both the Chemicals and Chemical Products segments. - FY2019-Q2WorsenedAnnual report
「Manufacturing and sales for the automotive industry in Japan and overseas remained solid for sales to major automakers, but higher raw material procurement costs and other factors resulted in higher sales and lower profit. Segment sales were ¥8,355 million, an increase of ¥107 million, or 1.3%, from the same quarter of the previous year, while operating profit was ¥677 million, a decrease of ¥136 million, or 16.8%. Import sales from China and Russia remained solid, but higher raw material procurement costs and other factors resulted in higher sales and lower profit.」
Margin pressure from higher raw material prices emerged in the Other segment in addition to the Chemicals segment, where sales increased but operating profit declined 16.8%. - FY2019-Q1WorsenedAnnual report
「Manufacturing and sales for the automotive industry in Japan and overseas remained solid for sales to major automakers, but operating profit declined due to higher raw material procurement costs and other factors. Segment sales were ¥4,145 million, an increase of ¥79 million, or 1.9%, from the same quarter of the previous year, while operating profit was ¥322 million, a decrease of ¥83 million, or 20.7%.」
While sales increased 1.9%, operating profit declined 20.7% due to higher raw material procurement costs and other factors, quantifying the impact of margin pressure. - FY2018WorsenedAnnual report
「Manufacturing and sales for the automotive industry increased revenue as the number of products sold to major automakers rose in Japan and overseas, but operating income declined due to higher raw-material procurement costs and other factors. Revenue in the segment was ¥17,338 million, up 7.2% year on year, while operating income was ¥1,648 million, down 15.2%.」
While sales to major automakers increased 7.2%, operating profit declined 15.2% due to higher raw material prices and other factors, quantifying the full-year impact of margin pressure from rising raw material prices. - FY2018-Q3WorsenedAnnual report
「Manufacturing and sales for the automotive industry remained solid, as sales increased due to higher sales of products for major automakers in Japan and overseas. However, operating profit declined due to higher raw material procurement costs and other factors. Segment sales were ¥12,687 million, up 12.0% year on year, while operating profit was ¥1,221 million, down 11.8%.」
While sales increased 12.0% due to higher sales of products for major automakers, operating profit declined 11.8% due to higher raw material procurement costs and other factors, quantifying the impact of margin pressure. - FY2018-Q2First statedAnnual report
「Manufacturing and sales for the automotive industry performed strongly, as sales increased due to higher production and sales volumes of products for major automakers in Japan and overseas. However, operating profit declined due to higher raw material procurement costs and other factors. Manufacturing and sales of soundproofing materials for home appliances were affected overseas by higher raw material prices and production cuts resulting from production adjustments.」
The report stated that higher raw material procurement costs led to lower operating profit in the Chemicals segment, while higher raw material prices overseas led to production cuts in soundproofing materials for home appliances.